19. August 2023

FTX Settles $175M Claim With Genesis, Cuts Claims by 95%

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  • Alameda Research has settled a $175 million claim with the bankrupt crypto firm, Genesis.
  • This settlement is intended to facilitate the “Genesis Debtors’ chapter 11 plan of reorganization” and eliminates potential expenses and time associated with protracted litigation.
  • The deal is a marked drop from the $4 billion FTX initially demanded.

Background of the Case

Alameda Research, the trading wing of the defunct exchange, FTX, has settled a claim for $175 million with the bankrupt crypto firm, Genesis, according to recent court filings. Based on legal filings unveiled on Aug. 17, Alameda Research will stake a claim of $175 million from Genesis’ assets. The deal is a marked drop from the $4 billion FTX initially demanded . Notably, the settlement also dismisses any counterclaims Genesis held against FTX. The maneuver is strategy to streamline the process of concluding the companies’ dealings and to expedite the return of funds to the customer base, particularly after Genesis Global Capital, a lender, declared bankruptcy in January of this year.

What Did John J Ray III Say?

John J. Ray III, FTX’s CEO, in a concurrent submission , concurred with the settlement’s terms. He asserted that, considering the ambiguities surrounding the legal claims